Shares of Oil and Natural Gas Corporation (ONGC) are trading with gains of 8% to hit a 52-week high of ₹253.40 apiece on Monday ahead of the company's December quarter earnings announcement. This is the biggest single-day gain for the stock since March 2022.
A surge in
crude oil prices may also have boosted investor sentiments. The Brent Crude oil that had slipped to close to $75 a barrel levels at the beginning of January have risen to around $84.80 a barrel levels. The Houthis attacks on oil tankers in Red Sea have contributed to about 9% rise in Brent prices recently on fears of supply disruption thus leading to an improvement in investor sentiments for up stream oil and Gas producers like ONGC.
Analysts had expected the crude prices to remain at $80-85 a barrel levels this year.
Avishek Datta of Anand Rathi said that the ONGC stock is up given a rise in crude oil prices due to uncertain geopolitical situation. "Also, with new gas field brought into production, ONGC will see a step jump after many years of decline," Datta said.
Last week, ONGC had informed that its board is set to meet in February to consider and approve the financial results for the October-December 2023 period. Along with its quarterly results, the state-owned company will also declare a second interim dividend for its shareholders.
At 1:54 pm, the PSU stock was trading 8.35% higher at ₹253.60 apiece on the NSE. ONGC stock has gained 23% this year and risen 75% in a year. The stock is the top gainer on the Nifty 50 index.
ONGC is a crude oil and natural gas company. The company's business segments include exploration and production, and refining and marketing. The company is engaged in exploration, development and production of crude oil, natural gas and value-added products.
First Published: Jan 29, 2024 2:15 PM IST
